Inventory Optimization Diagnostic

Inventory is key to cash flow and an indication of health in any complex supply chain. Our inventory and supply chain Experts identify inefficiencies and create optimized strategies to improve customer service with lower working capital. Partner with Catalant’s highly qualified Experts to:

Balance inventory and prevent over or under stocking

Improve demand responsiveness

Enhance cash position

Approach

A Comprehensive Approach That Goes Beyond Top-Down Target Setting and Liquidating Excess

01

Assess health and effectiveness of current inventory levels

We combine bottom-up inventory analysis with industry benchmarking to form complete picture on current state and health of inventory.

02

Identify root causes of excess inventory and size opportunity

We pinpoint key issues in planning, strategy, and execution that drive both stockouts and excess inventory accumulation.

03

Develop targeted solutions for each issue identified

We collaborate with stakeholders to assess each potential issue and address gaps in supply chain processes and systems.

04

Design and execute a value capture roadmap

We create an action plan that captures value in as soon as two months and ensures long-term sustainability.

Winning Together

Inventory Optimization in Action

Heavy Industrials ETO
More Success Stories

Problem

A heavy industrials equipment manufacturer was struggling with increasing inventory levels, resulting in warehouse capacity overflow and a decline in on-time delivery rates. An end-to-end supply chain diagnostic revealed that material shortages were causing partially assembled products to pile up, resulting in excessive inventory and delayed customer orders.

Action

The team implemented a transformation program to address key root causes for stock outs, including creation of a Planning Center of Excellence to align demand with capacity, revising safety stock calculations to ensure component availability, and deploying a supply visibility dashboard using ERP analytics to predict and prevent last-minute surprises.

Results

Achieved significant improvements in several factors impacting working capital and profit within 6 months, including:

 

  • 15% reduction in excess inventory
  • 4% improvement in on-time delivery performance.
  • 5-10% reduction in expedite, logistics, and administrative costs through better ordering

Industrial Equipment Company

Consolidated data from 30+ ERP systems, implemented S&OP and inventory playbook, improved availability, and reduced inventory by $85MM (12%)

Large Distributor

Created roadmap for new system and process architecture for next gen inventory management practices to enhance visibility and tracking, implemented quick wins that landed $20M in reduction (5%) in 3 months

Major Automotive Equipment Manufacturer

Set up inventory control tower, reset safety stock, reduced inventory by $120MM (15%).

Featured Inventory Optimization Experts

Featured Inventory Optimization Experts

Mike L.

16 years of experience in supply chain and operations process and systems improvements

Former McKinsey Supply Chain Senior Expert. Pioneered a breakthrough method to identify supply chain gaps using inventory data. Successfully deployed for 20+ clients across industries.

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Borko B.

25 years of experience in supply chain, operations, and strategy

Specialized in inventory optimization, lean manufacturing, S&OP, demand planning and IIOT/Factory 4.0 across industries like transportation, manufacturing, industrials, and CPG.

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Lane A.

30+ years of experience in supply chain planning and analytics

Former consultant at Accenture, EY, and Deloitte, focused on inventory optimization, forecasting, constraint-based supply planning, and analytics.

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